By: Ahura Chalki
Powell comment to raise Gold or Assets?
As the market was expecting, Mr. Powell in his testimony, confirmed a more dovish approach and confirmed his positive idea about rate cut as soon as July FED meeting. This comment effected on USD to fell back to $96.45, which made Gold up to $1427 overnight. If we go on details, the rate cut supposed to help industries and stock markets, which we saw that yesterday with the S&P 500 peak as well as USA30 and USA100. It was a short term market reaction, however in the long term, we supposed to see more equity moving from Gold to Stock markets and bearish in Gold price, as well.
From the technical side, Candles still forming clearly above SMA and confirmation of more bullish, while RSI moves on the overbought area and sign of reverse or correction. MACD line also cutting down its signal line and getting ready for bearish or correction at least.
Pivot point: 1411.25
Resistance levels: 1433.12 / 1440.54
Support levels: 1404.10 / 1382.50
The expected trading range for today is between 1404.10 support and 1433.12 resistance.
Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.